Takahashi, Harutaka (2004): The capital-intensity reversal in the postwar Japanese economy: Why did Japan grow so fast during 1955-1975?
Download (541Kb) | Preview
Our main result is the following: during the high-speed growth era, from 1955 to 1973, the investment sector was more capital-intensive than the consumption sector. Just after the 1973 oil-shock, around 1975, the consumption sector turned out to be more capital-intensive than the investment sector. Since then, the consumption sector has been capital-intensive through the stable-growth era, from 1975 to 1984, and the Bubble era, from 1985 to 1995. In other words, we observe the appearance of a so-called “capital-intensity reversal” around 1975. Due to the 1973 oil shock, the economic structure of the Japanese economy has totally changed. Thus many researchers believe that this external shock brought the Japanese high-speed growth era to an end. On the contrary, as our empirical study has shown here, the capital-intensity reversal of the Japanese economy could have endogenously occurred as a result of the demand effect accruing from the high economic growth.
|Item Type:||MPRA Paper|
|Original Title:||The capital-intensity reversal in the postwar Japanese economy: Why did Japan grow so fast during 1955-1975?|
|Keywords:||capital-intensity reversal; I-O table; input-output analysis; Leontief matrix|
|Subjects:||N - Economic History > N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations > N10 - General, International, or Comparative
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E22 - Capital; Investment; Capacity
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
|Depositing User:||Harutaka Takahashi|
|Date Deposited:||10. Sep 2010 17:25|
|Last Modified:||12. Feb 2013 12:10|
Aghion, Phillipe and Howitt, Peter Endogenous Growth Theory, Boston: MIT Press, 1998.
Barro, Robert J. and Sala-i-Martin, Xavier Economic Growth, New York: McGraw-Hill 1995.
Benhabib, Jess and Nishimura, Kazuo “Competitive Equilibrium cycles,” Journal of Economic Theory 35,1985, pp. 284-306.
Burmeister, Edwin and Dobell, Rodney A. Mathematical Theory of Economic Growth, New York: Macmillan 1972.
Denison, Edward F. and Chung, William K. How Japan’s Economy Grew So Fast: The Sources of Postwar Expansion, Oxford: Oxford University Press 1976.
Dollar, David and Wolff, Edward N. “Capital Intensity and TFP Convergence by Industry in Manufacturing, 1963-1985,” in Convergence of Productivity eds. By W. Baumol, R. Nelson, and E. Wolff eds. New York: Oxford University Press, 1994.
Durlauf, Steven N. and Quah Danny T. “The New Empirics of Economic Growth,” in Handbook of Macroeconomics Vol. 1A, eds. by J. Taylor and M. Woodford, New York: North-Holland, 1999.
Gilchrist, Simon and Williams John C. “Transition Dynamics in Vintage Capital Models:Explaining the Postwar catch-Up of Germany and Japan,” Finance and Economics Discussion paper 2001/07, Board of Governors of the Federal Reserve System 2001.
Kuga, Kiyoshi “On the Capital Intensity Hypothesis,” Economic Studies Quarterly 18, 1976, pp.1 51-59.
Kosai, Yutaka The Era of High-Speed Growth, Tokyo: Tokyo University Press 1986.
Leontief, Wassily W. “Domestic Production and Foreign Trade: The American Capital Position Reexamined,” Economia Internazional Volume 7, 1954.
Uzawa, Hirofumi “Optimal Growth in a Two-Sector Model of Capital Accumulation,” Review of Economic Studies 31, 1964, pp.1-24.